Small-Cap Spotlight: A Look at Crocs and Dendreon

Editor's Note: Today, we debut Small-Cap Spotlight, a new weekly feature on TheStreet.com, aimed at providing readers with straightforward opinions on the most interesting stocks in the small-cap universe.

Frank Curzio and Larsen Kusick closely follow many of the small names that offer significant potential for aggressive investors looking for unique investing situations. Each week they'll highlight two plays and tell readers whether readers should consider investing in some of the most exciting small-cap opportunities. Click here to send them ideas of stocks you'd like them to cover in the future.

The Danger in Dendreon

Kusick: A Bad Bet

Our first stock this week is a name that's had quite a ride since March: Dendreon(DNDN), the biotech company that has seen Provenge, a vaccine for prostate cancer that is its most developed drug candidate, spur intense debate among health-care professionals and investors alike.

The rollercoaster ride began on March 29, when an FDA panel voted 13-4 in favor of the efficacy of Provenge and 17-0 in support of its safety, triggering a short squeeze that sent shares rocketing.

Following the vote, bears cried foul, noting that the FDA effectively changed its efficacy question after an initial negative response from the panel, which voted no when asked if the data "establish the efficacy" of the treatment (the key word being "establish"). But the panel changed its tune when asked if the data were "substantial but not conclusive." Nevertheless, the bulls won the round and shares pushed well over $20.